JAKARTA (TheInsiderStories) – State-owned lender, PT Bank Negara Indonesia Tbk (IDX: BBNI) considered to issue global bonds US$500 million in the first quarter of 2020, the official told the media on Wednesday (10/16). The proceeds will be used for refinancing and loan expansion.
Director at the bank, Bob Tyasika Ananta, revealed the bank paid attention to the timing and movement of the interest rate before release the global bonds. Beside publish global bonds, the company has issued negotiable certificates of deposits (NCD) with worth of Rp2.39 trillion ($165.90 million). The NCD divided in five series.
He elaborated, Series A have a nominal value Rp430 billion with tenure three months and discount rate 6.3 percent per annum. Series B with total amount Rp250 billion have a discount rate 6.5 percent and a six month tenure.
Series C with tenure nine months and a discount rate of 6.59 percent worth of Rp50 billion. Series D with a nominal Rp1.6 trillion with one year tenure and a discount rate 6.69 percent. Finally, the Series E was issued with value of Rp50 billion have a discount rate of 6.79 percent and one year tenure.
The NCD was issued on Sept. 25 and offered through a private placement. The corporate action helped by PT BNI Sekuritas, PT Mandiri Sekuritas and PT Danareksa Sekuritas.
Early 2019, Bank Negara Indonesia stated its eager to acquire bank, multi finance and general insurance firm in this year. For the actions, the bank prepared funds up to Rp4 trillion.
“Our target is bank and insurance company to complete our vision and mission as a financial institution,” according to the deputy managing director Herry Sidharta on January 23.
He stated, the acquisition could be done not only through BBNI but through the similar subsidiaries. In addition to these two types of company, the lender also intends to buy multi-finance to further expand the scope of existing businesses.
Currently, the local bank has five subsidiaries namely PT BNI Syariah, PT BNI Life, PT BNI Multifinance, PT BNI Securities and PT BNI Asset Management. The five companies in 2018 were able to contribute 9.24 percent to lender’ total profit on a consolidated basis.
Throughout first half (1H) of 2019, Bank Negara Indonesia‘ loan growth rose 20 percent, from Rp457.81 trillion in 1H of 2018 to Rp549.23 trillion in 1H of 2019. The loan growth was driven by corporate financing which reached 51.9 percent of BBNI’ total loan portfolio.
Furthermore, the bank’ deposits grew by 13 percent in annual basis to Rp595.07 trillion in 1H of 2019 from a year ago Rp526.48 trillion. The lender also able to maintain the ratio of low-cost funds which reached 64.6 percent of total deposits.
Net profit in the 1H of 2019 was recorded at Rp7.63 trillion, growing 2.7 percent from Rp7.44 trillion in 1H of 2018. While, net interest income’ growth only 1 percent, from Rp17.45 trillion in 1H 2018 to Rp17.61 trillion in 1H of 2019.
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